Vietnam: From Poverty to a 500 Billion US Dollar Economy
Over the past 80 years, Vietnam has undergone a remarkable transformation, from a poor, underdeveloped country into one of Southeast Asia’s largest economies. By 2024, Vietnam’s GDP reached about 476 billion US dollars and is projected to surpass 500 billion US dollars in 2025. This journey reflects the nation’s resilience and determination, as the will for self-reliance converged with aspirations for development in an era of globalization.
Eight decades of challenges and hardship have shaped Vietnam’s path. Once a war-torn agrarian economy with limited resources and meager income levels, the country has emerged as one of the fastest-growing economies in the world. Per capita income has risen from under 100 US dollars to nearly 5,000 US dollars, elevating Vietnam into the upper middle-income group.
Since launching Doi moi (Renewal) in 1986, Vietnam has steadily integrated into the global trading system. Today, it has signed and implemented 17 free trade agreements with more than 60 major partners worldwide. This expansive network has propelled Vietnam into the ranks of the world’s top 20 trading nations, fueled by strong growth and consistent trade surpluses.
Notably, Vietnam’s participation in new-generation free trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), and the UK-Vietnam Free Trade Agreement (UKVFTA), underscores its strong commitment to deep and comprehensive integration. These accords reflect not only the country’s expanding role on the global stage but also the trust and confidence of its international partners.
"The Party and the State must not stand apart from the economy, but instead proactively shape the space for development, foster a fair ecosystem, and safeguard the core values of the market."
Party General Secretary to Lam
According to Mariam Sherman, World Bank Country Director for Vietnam, Cambodia, and Laos, Vietnam’s aspirations rest on a solid foundation. In the four decades since Doi moi, the country has posted remarkable economic growth and poverty reduction. The GDP has surged, the economy has expanded rapidly, and millions have been lifted out of poverty. The extreme poverty rate has dropped from half the population to just 1%, making Vietnam one of the fastest nations in history to reduce poverty. This progress is rooted in gradual yet steady improvements in institutions and policies.
Alvaro Pereira, Chief Economist of the Organization for Economic Co-operation and Development (OECD) in Vietnam, said he has examined countries across the globe, from Australia to North America, Asia to Africa, and Latin America, but few have impressed him as much as Vietnam. The nation is advancing at an extraordinary pace, with average income doubling every decade. He credits this achievement to strong macroeconomic management, sound government policies, and the remarkable drive of its people. Today, Vietnam stands among the fastest-growing economies in the world.
By 2025, Vietnam rose to rank among the world’s top 20 trading nations, to stand among the 20 most attractive destinations for foreign direct investment (FDI), and to be listed among the top 10 countries globally for remittance inflows.
Ted Osius, President of the US-ASEAN Business Council, noted that Vietnam enjoys impressive economic growth, a favorable business environment, and a market of 100 million people. He added that businesses are confident in the Vietnamese government’s proactive approach to addressing potential challenges. American companies have shown strong interest in Vietnam and hold high expectations for the country’s bright future.
Amid global economic turbulence, Vietnam has a major opportunity to accelerate its transformation into a sustainable, innovative, and inclusive economy. The journey ahead will not be without challenges, but with solid foundations and a strong commitment to progress, the nation is poised to reinforce its place on the world stage.
Story: VNP Photos: VNP, VNA & Files Translated by Hong Hanh